FAQ
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CFD Margin

Q1. What is the initial margin?

Initial margin is the margin that you must furnish in order to transact in a CFD and is calculated as a percentage of the full contract value.
Initial margin varies with different CFDs thus you would have to check online for the initial margin on the CFD that you intend to place an order on.


Q2. What is Free Equity?

Free Equity is the surplus funds in the CFD account available for creating new buy and sell positions. You will be unable to initiate new positions if your Free Equity is negative.


Q3. What is Gross Liquidation Value (GLV)?

GLV is the value of the account if all the positions are sold at the current market price (excluding all the commission and charges).
GLV= Free Equity + Initial Margin


Q4. What is the daily mark-to-market pricing?

Mark-to-market is calculated based on the prevailing market prices of the underlying instrument. This means your initial margins required change in line with the markets movements.
Marked to Market (Initial Margin) = Quantity x Prevailing Market Price x Margin %


Q5. What is Margin Call?

A margin call occurs when you no longer have any free equity to cover the margin required to hold that position. You need to have funds in your account over and above that of the required margin to ensure you can cover any unrealised losses the position may incur.


Q6. How will I know I am subject to a margin call?

You will receive an email notification from CGSI informing you of a margin call. You may refer to the Daily Activity Statement for the amount that you are required to top up.


Q7. Can I place an order without depositing the initial margin?

No. The system will reject the order if your account has insufficient funds to meet the initial margin requirement(s).


Q8. What happens if I fail to top up by the stipulated timeline?

CGSI has the sole discretion to force-close the outstanding CFD contracts without further notice to you if you fail to top up the required margin by the stipulated timeline.